<PAGE>
 
                    U.S. SECURITIES AND EXCHANGE COMMISSION

                            Washimgton, D.C. 20549

                                  FORM 10-QSB

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND
                      EXCHANGE ACT OF 1934 [FEE REQUIRED]

              For the Quarterly Period Ended September 30, 1996.

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND
                    EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

                       Commissioner file number: 0-19852

                     GREAT AMERICAN HOTELS & RESORTS, INC.
                (Name of small business issuer in its charter)
 
                Georgia                                  58-1956846
     (State or other jurisdiction of       (IRS employer identification number)
     incorporation or organization)

         3300 Holcomb Bridge Road, Suite 290, Norcross, Georgia 30092
             (Address of principal executives' offices) (Zip code)

                                (770) 798-8500
                          (Issuer's telephone number)

      Securities registered under Section 12(b) of the Exchange Act: None

        Securities registered under Section 12(g) of the Exchange Act:
              Title of Class: Class A Common Stock, no par value.

     Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to the
filing requirements for the past 90 days.

                             Yes         No    X 
                                --------   -------- 

      The registrant had 3,510,571 shares of common stock outstanding as of
February 28, 1998.

                                       1
<PAGE>
 
           GREAT AMERICAN HOTELS AND RESORTS, INC. AND SUBSIDIARIES

                                     INDEX

<TABLE> 
<CAPTION> 
<S>                      <C>                                                              <C> 
Part I.  Financial Information                                                            Page No.
                                                                                          --------
         Item 1.         Condensed Consolidated Financial Statements

                         Consolidated Balance Sheets --                                     3
                         September 30, 1996 (unaudited) and June 30, 1996

                         Consolidated Statements of Income --                               5
                         Three Months Ended September 30, 1996 (unaudited) and 1995  

                         Consolidated Statements of Cash Flow --                            6
                         Three Months Ended September 30, 1996 (unaudited) and 1995

                         Notes to Consolidated Financial Statements                         8
         
         Item 2.         Management's Discussion and Analysis of Financial Condition        10
                         And Results of Operations

Part II. Other Information

         Item 1.         Legal Proceedings                                                  10
 
         Item 2.         Changes in Securities                                              10

         Item 3.         Defaults Upon Senior Securities                                   11

         Item 4.         Submission of Matters to a Vote of Security Holders                11

         Item 5.         Other Information                                                  11

         Item 6.         Exhibits and Reports on Form 8-K                                   11


                         Signatures                                                         12    

</TABLE> 

                                       2
<PAGE>
 
                         PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

            GREAT AMERICAN HOTELS & RESORTS, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
               September 30, 1996 (unaudited) and June 30, 1996
<TABLE>
<CAPTION>
                                             September 30, 1996   June 30, 1996
                                             ------------------   -------------
<S>                                          <C>                  <C>
ASSETS
Current Assets:
     Cash and cash equivalents                       $  245,021      $  513,199
     Restricted cash                                          0          38,188
     Note receivable                                          0         206,859
     Stock subscription receivable                      229,326         229,326
     Deposits                                                 0         236,601
     Accounts receivable                                157,205          43,436
     Property and equipment held for sale                     0          89,730
                                             ------------------   ------------- 
TOTAL CURRENT ASSETS                                    631,552       1,357,339
 
Property and Equipment:
     Land                                             1,981,066         884,981
     Resort rental units                              4,544,925       4,440,030
     Furniture and equipment                            605,935         599,925
     Office building and improvements                   441,715         441,715
                                             ------------------   -------------
 
     Accumulated depreciation                          (506,901)       (441,142)
                                             ------------------   ------------- 

NET PROPERTY AND EQUIPMENT                            7,066,740       5,925,509
 
Other assets:
     Deferred acquisition costs                         573,324         513,322
     Debt issue costs, net                              120,300         139,866
     Prepayments and deposits                             4,628           8,817
                                             ------------------   -------------
TOTAL OTHER ASSETS                                      698,252         662,005
                                             ------------------   -------------
     TOTAL ASSETS                                    $8,396,544      $7,944,853
                                             ------------------   ------------- 
</TABLE>

                                       3
<PAGE>
 
            GREAT AMERICAN HOTELS & RESORTS, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
               September 30, 1996 (unaudited) and June 30, 1996
<TABLE>
<CAPTION>
                                                    September 30, 1996   June 30, 1996
                                                    ------------------   -------------
<S>                                                 <C>                  <C>
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current Liabilities:
     Accounts payable                                      $   424,724     $   288,714
     Accrued expenses                                           59,107         112,593
     Common stock to be issued                                 180,579               0
     Current maturities of long term debt                      780,403         671,232
                                                    ------------------     -----------
TOTAL CURRENT LIABILITIES                                    1,444,813       1,072,539
 
Long term debt less current maturities                       6,053,695       5,356,138
                                                     -----------------     -----------
TOTAL LIABILITIES                                          $ 7,498,508     $ 6,428,677
                                                     -----------------     -----------
Stockholders' equity:
Preferred stock, no par value,
     16,000,000 shares authorized, none issued                      --              --
Series A preferred stock, no par value,
     4,000,000 shares authorized, 81,000 issued
     and outstanding, liquidation value of
     $10 per share                                             761,935         766,680
Common stock Class A, no par value,
     20,000,000 shares authorized, 2,623,519
     issued, 2,598,515 outstanding                           5,569,181       5,565,538
Common stock Class B, no par value,
     10,000,000 shares authorized, none issued                      --              --
Common stock Class C, no par value,
     2,000,000 shares authorized, 200,000 issued
     and outstanding                                               100             100
Treasury stock, 25,004 shares, at cost                              --              --
Additional paid in capital                                     250,875         211,875
Accumulated deficit                                         (5,684,055)     (5,028,017)
                                                        --------------      ----------
 TOTAL STOCKHOLDERS' EQUITY                                    898,036       1,516,176
                                                        --------------      ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY                                       $ 8,396,544     $ 7,944,853
                                                        --------------     -----------
</TABLE>

                                       4
<PAGE>
 
            GREAT AMERICAN HOTELS & RESORTS, INC. AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF INCOME
      For the Three Months Ended September 30, 1996 (unaudited) and 1995
<TABLE>
<CAPTION>
                                    Three months ended   Three months ended
                                    September 30, 1996   September 30, 1995
                                    ------------------   ------------------
<S>                                 <C>                  <C>
REVENUES
     Rental                             $  246,959           $  231,815
     Travel agency                          28,158                6,169
     Other income                           18,031               24,291
                                        ----------           ----------
                                           293,148              262,275

OPERATING EXPENSES
     Rental                                309,191              230,042
     Travel agency                          28,746               (1,134)
     Salaries & wages *                     61,870               36,900
     General & administrative *            238,163              325,437
     Depreciation & amortization            85,381               45,301
                                        ----------           ----------
                                           723,351              636,546

INCOME (LOSS) FROM OPERATIONS             (430,203)            (374,271)

GAIN (LOSS) ON THE SALE
OF PROPERTY                                (70,751)              52,074

OTHER INCOME (EXPENSE)                           0                    0

MINORITY INTEREST IN LOSS
OF CONSOLIDATED SUBSIDIARY                       0               32,719

INTEREST INCOME (EXPENSE)                 (139,860)            (153,406)
                                        ----------           ----------
NET INCOME (LOSS)                        ($640,814)           ($442,884)
                                        ----------           ----------
NET INCOME (LOSS) PER SHARE
OF COMMON STOCK                             ($0.24)              ($0.27)

WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING
DURING PERIOD                            2,684,999            1,660,990

</TABLE>
 

     * Excludes travel agency

                                       5
<PAGE>
 
            GREAT AMERICAN HOTELS & RESORTS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASHFLOW
      For the Three Months Ended September 30, 1996 (unaudited) and 1995
<TABLE>
<CAPTION>
                                                       Three months ended   Three months ended
                                                       September 30, 1996   September 30, 1995
                                                       ------------------   ------------------
<S>                                                    <C>                  <C>
OPERATING ACTIVITIES:
     Net loss                                               ($640,814)          ($442,884)
     Adjustments to reconcile net loss to
     cash used by operating activities:
       Depreciation and amortization                           85,381              45,301
       Stock issued for services and settlements               12,643                  --
       Minority interest in loss of
         Consolidated subsidiary                                   --              32,719
       Loss on the sale of property held for sale              70,751                  --
     Changes in operating assets and liabilities:
       (Inc) dec. in accounts receivable                       93,090             (18,170)
       (Inc) dec. in prepaid and other                         19,566              (6,958)
       (Inc) dec. in accounts payable                         136,010              42,414
       (Inc) dec. in accrued expenses                         (53,486)             24,235
                                                           ----------           ---------
     NET CASH USED IN
     OPERATING ACTIVITIES                                    (276,859)           (323,343)

INVESTING ACTIVITIES:
     Purchase and construction of property
       and equipment                                       (1,206,990)            (80,949)
     Proceeds from sale of property and
       equipment held for sale                                     21              43,578
     Payment of organization costs                                 --                (655)
     Payment of advances receivable                                --            (249,000)
     Proceeds (payments) on deposits                          180,790             (82,585)
                                                           ----------           ---------
     NET CASH USED IN
     INVESTING ACTIVITIES                                  (1,026,179)           (369,611)
</TABLE>

                                       6
<PAGE>
 
            GREAT AMERICAN HOTELS & RESORTS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASHFLOW
      For the Three Months Ended September 30, 1996 (unaudited) and 1995
<TABLE>
<CAPTION>


                                                     Three months ended   Three months ended
                                                     September 30, 1996   September 30, 1995
                                                     ------------------   ------------------
<S>                                                  <C>                  <C>
FINANCING ACTIVITIES:
     Change in restricted cash                               38,188              (6,292)
     Proceeds from mortgage notes payable and
       long term debt, net of debt-issue costs              900,500                  --
     Principal payments on mortgage notes
       payable and long term debt                           (93,772)           (339,896)
     Proceeds from issuance of Series A Preferred
       Stock, net of issue costs                                 --              41,945
     Proceeds from issuance of Class A Common
       Stock, net of issue costs                            184,222                  --
     Proceeds from subscription receivable                       --                  --
     Increase in subscriptions receivable                        --             382,500
     Other                                                    5,722             (10,020)
                                                         ----------            --------
     NET CASH PROVIDED BY
     FINANCING ACTIVITIES                                 1,034,860              68,237

INCREASE (DECREASE) IN CASH
     AND CASH EQUIVALENTS                                  (268,178)           (624,717)

CASH AND CASH EQUIVALENTS,
     BEGINNING OF PERIOD                                    513,199             604,923
                                                         ----------            --------
CASH AND CASH EQUIVALENTS,
     END OF PERIOD                                       $  245,021            ($19,794)
                                                         ----------            --------
</TABLE>

                                       7
<PAGE>
 
            GREAT AMERICAN HOTELS & RESORTS, INC. AND SUBSIDIARIES
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        September 30, 1996 (unaudited)

1.  PRESENTATION OF INTERIM FINANCIAL INFORMATION

    In the opinion of the management of Great American Hotels & Resorts, Inc.
and subsidiaries (the "Company"), the accompanying "unaudited" consolidated
financial statements include all normal adjustments considered necessary to
present fairly the financial position as of September 30, 1996, and the results
of operations for the three months ended September 30, 1996 and 1995, and cash
flows for the three months ended September 30, 1996 and 1995. Interim results
are not necessarily indicative of results for a full year.

    The condensed consolidated financial statements and notes are presented as
permitted by Form 10Q, and do not contain certain information included in the
Company's audited consolidated financial statements and notes for the fiscal
year ended June 30, 1996.

2.  ORGANIZATION

    Great American Hotels & Resorts, Inc. ("GAR") was incorporated under the
laws of the State of Georgia on July 29, 1991. The Company was formed for the
purpose of engaging in the business of purchasing, developing and managing
properties in the overnight resort rental market in areas throughout the world.

    The accompanying financial statements include the accounts of Great American
Hotels & Resorts, Inc. and its six wholly owned subsidiaries: Great American
Honeymoon Resorts, Inc., Great American Travel Network, Inc., Great American
Resorts of Florida, Inc., Great American Casinos, Inc., Great American Resorts
of Biloxi, Inc. and Gold Coast Security Trust Properties, Inc.  All significant
intercompany balances, transactions and stockholdings have been eliminated.

3.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

    CASH AND CASH EQUIVALENTS--For purposes of the statements, the Company
considers all money market accounts and highly liquid debt instruments purchased
with an original maturity of three months or less to be cash equivalents.

    PROPERTY AND EQUIPMENT--Property, improvements and equipment are recorded at
cost.  Expenses for repairs and maintenance are charged to expense as incurred
and additions and improvements that significantly extend the lives of assets are
capitalized.  Upon the sale or other retirement of depreciated property, the
costs and accumulated depreciation are removed from the related accounts and any
gain or loss is reflected in operations.

    Depreciation is provided using the straight line and accelerated methods
based upon the useful lives of the depreciable assets ranging from five to
thirty nine years.

    DEFERRED ACQUISITION COSTS--Deferred acquisition costs include professional
fees and other direct costs related to the evaluation of prospective property
acquisitions. If the acquisitions are completed, the costs are included as
property costs. If a prospective property is not acquired, the costs are
expensed.

    DEBT ISSUE COSTS--Debt issue costs represent the direct costs of issuing
debt securities. These costs are amortized over the term of the related
debt.

    INCOME TAXES--The Company accounts for incomes taxes under Statement of
Financial Accounting Standards No. 109 ("SFAS No. 109").  Temporary differences
are differences between the tax basis of

                                       8
<PAGE>
 
assets and liabilities and their reported amounts in the financial statements
that will result in taxable or deductible amounts in future years.

    NET LOSS PER SHARE OF COMMON STOCK--Net loss per share is computed by
dividing the net loss after deducting preferred stock dividends for the period
by the weighted average number of shares of common stock outstanding during the
period.

4.  STOCK SUBSCRIPTION RECEIVABLE

    The Company issued 400,000 shares of Class A common stock to Caragh Holdings
during August 1995 as a deposit on the purchase of a parcel of land.  Such
purchase was later cancelled by mutual consent of the parties.  Caragh Holdings
may purchase the shares by paying $2.00 per share to the Company until December
31, 1997, at which time any non-purchased shares will be returned to the
Company.  In related agreements, Caragh Holdings agreed to purchase an
additional 300,000 shares of Class A common stock, 200,000 for $3.20 per share
and 100,000 for $2.00 per share or $840,000.  The Company issued the 300,000
shares of stock to Caragh Holdings in September 1995 and has received $610,674
from Caragh Holdings towards the subscription.  As of September 30, 1996, the
Company had recorded a $229,326 stock subscription receivable.

5.  SUBSEQUENT EVENTS

    During September 1996, the Company formed a wholly owned subsidiary, Gold
Coast Security Trust Properties, Inc. ("Gold Coast"), a Florida corporation. In
a private placement, Gold Coast offered to sell 1,000 shares of its Class A 20%
cumulative participating preferred shares for $1,000 per share. Through February
28, 1998, Gold Coast had sold 940 shares for gross proceeds of approximately
$939,768.

    On May 1, 1997, Gold Coast acquired a 65% interest in the issued and
outstanding stock of Jacjon, Inc. ("Jacjon"), a Florida corporation. The
remaining 35% interest was acquired by an outside investor. The purchase price
was $1,261,617 in cash, $3,233,090 in mortgage and notes payable and $396,000 in
acquisition costs. Jacjon owns the 229 room Days Inn / Super 8 and the attached
restaurant in Vero Beach, Florida. The acquisition was recorded using the
purchase method of accounting by which the assets are valued at fair market
value at the date of acquisition. The purchase price allocation is as follows:
<TABLE>
<CAPTION>
 
<S>                               <C>
     Land                         $  671,347
     Buildings                     3,790,246
     Furniture, fixtures, etc.       276,214
     Other assets                    152,900
                                  ----------
                                  $4,890,707
</TABLE>

    In June 1997, the Company formed a majority owned subsidiary, Orlando
Security Trust, Ltd. ("Orlando"). The Company owns 74.25% of the limited partner
interest and 100% of the general partner interest for a total ownership
percentage of 75.25%. On June 27, 1997, Orlando purchased 100% of the issued and
outstanding shares of ASIG, Inc. ("ASIG"), a Florida corporation. ASIG owns the
56 room Ramada Limited in Orlando, Florida. The purchase price was $479,388 in
cash, $1,979,651 in mortgage and notes payable and $242,789 in acquisition
costs. The acquisition was recorded using the purchase method of accounting by
which the assets are valued at fair market value at the date of acquisition. The
purchase price allocation is as follows:
<TABLE>
<CAPTION>
 
<S>                               <C>
     Land                         $  354,263
     Buildings                     2,025,116
     Furniture, fixtures, etc.       264,375
     Other assets                     58,074
                                   --------- 
                                  $2,701,828
</TABLE>

                                       9
<PAGE>
 
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES

     The Company's working capital at September 30, 1996 was a deficit of
($813,261) as compared to a surplus of $284,800 for the year ended June 30,
1996.  Contributing to the reduction working capital was the Company's net loss
for the period of ($640,814) which was only partially offset by other factors
affecting working capital, accounts receivable, accounts payable, deposits, etc.
In addition, during September 1996, the Company purchased land in Hawaii, which
required a cash outlay of approximately $160,000 and resulted in an increase of
current debt of $167,000.  The Company anticipates having to raise additional
funds through private securities offerings to finance its operations, meet
delinquent obligations (See Part II, Item 3, Defaults Upon Senior Securities)
and carry out its business plan, which includes future acquisitions.

RESULTS OF OPERATIONS

     For the quarter ended September 30, 1996, the Company incurred losses from
continuing operations of ($570,063) and a loss on sale of property of ($70,751)
for a total net loss of ($640,814).  Rental revenues totaled $246,959, an
increase of 6.5% over the prior year.  Though the Company lost room-nights as a
result of the sale of the Hilton Head cottages, renovations in Reno were moving
toward completion adding capacity in the hotel.  The Company continues to
recognize operating losses from the Reno property and is currently making
changes to management, marketing strategies and other areas in an attempt to
enhance the performance of the hotel.  Salaries and wages increased
significantly over prior year as the Company employed two professionals to
assist with future acquisitions.  Depreciation expense increased as a result of
new depreciation charges on the completed renovations to the Reno property.


                          PART II - OTHER INFORMATION

ITEM 1 - LEGAL PROCEEDINGS

     On November 17, 1995, RRR, INC. d/b/a MAXimum Resort Rentals, Inc., filed a
lawsuit in the Beauford County, South Carolina against the Company.  The
plaintiff was retained by the Company to manage the Company's cottages (sold
fiscal 1996) located in Hilton Head, South Carolina.  The lawsuit alleges that
the Company breached its agreement with the plaintiff when the Company entered
into agreements to sell the cottages.  The lawsuit seeks actual damages of
$3,000,000 plus unspecified punitive damages.  The Company believes this lawsuit
is without merit and intends to defend it vigorously.  The Company is currently
in the deposition process and expects the matter to go to trial within the next
90 days.  The Company has counterclaimed for $110,000.


ITEM 2 - CHANGES IN SECURITIES

     None.

                                       10
<PAGE>
 
ITEM 3 - DEFAULTS UPON SENIOR SECURITIES

     As of February 28, 1998, the Company was delinquent on interest payments
amounting to $155,994, dividend payments on preferred stock of  $180,410 and
principal payments on notes to individuals totaling $924,549.

<TABLE>
<CAPTION>

      Due Date      Principal Obligation
      --------      --------------------
      <S>           <C>
      06/30/96            $ 11,000
      02/06/97              20,000
      03/17/97               6,000
      04/04/97              63,000
      05/31/97              23,000
      06/30/97              94,333
      08/30/97              12,000
      12/01/97              20,000
      12/31/97             523,216
      01/31/98             142,000
      02/16/98              10,000
                          --------
     Total                $924,549
                          --------
</TABLE>

     The Company intends to renegotiate all past due amounts.  The Company has
successfully negotiated with several of the individual noteholders to extend and
arrange payment plans.


ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     None.


ITEM 5 - OTHER INFORMATION

     None.


ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

     Exhibits - None.

     The Company did not file any reports on form 8-K during the quarter ended
September 30, 1996.

                                       11
<PAGE>
 
                                  SIGNATURES

     In accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused the report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                        GREAT AMERICAN HOTELS AND RESORTS, INC.


Date:                                   By: 
      -------------------                  ------------------------------------
                                           Edward L. Bates, President


Date:                                   By:
       ------------------                  -------------------------------------
                                           David T. Potts, Chief Operating 
                                             Officer


Date:                                    By:
       ------------------                   ------------------------------------
                                            Rob A. Turner, Chief Financial
                                              Officer

                                       12